Digital World Business Relationship “The Cloud and the Customer”

The volume of product-related information available today can overwhelm consumers. They sense a need for a consistent buying experience which will ensure satisfactory decision making and successful transactions. Most technological innovations throughout history have been designed to simplify work and reduce dependence on human labor. Digital “platforms” are the most recent innovations attempting to coordinate and simplify daily business transactions.

Network-based platforms do not replace, they support customary methods of information access and transaction authorization. Well designed platforms can be comprehended immediately and provide simplified communication and coordination of countless complex activities. The centralized accumulation of data renders previously opaque transactions transparent.

Business transaction platforms benefit both buyers and sellers by offering:

Quality interactions with increased volume capacity

  • Flexibility in application with increased precision of execution
  • Individualized accounts with greater interconnectivity
  • Maximized operational reliability while maintaining low cost
  • Resolution of sharing and ownership issues
  • Knowledge of the whole picture while addressing any part of it
  • Being in one place while being in touch with everyplace
  • Serving one at essentially the same cost of serving a million

The transaction, which has become all encompassing, distrusted, burdensome and expensive, will shift into an environment of being transparent, seamless and effortless at minimal cost. Eliminating duplicative efforts and unsatisfying customer service experiences will increase the value of transactions with companies adopting platform technologies.

As Adam Smith stated:

“The natural effort of every individual to better his own condition is so powerful a principle that it is alone, and without any assistance, not only capable of carrying on the society to wealth and prosperity, but of surmounting a hundred impertinent obstructions”.

Today there are very powerful forces that are driving all of us, in both our business and individual lives, to make changes in how we transact business.

“Typical” Value Creation

To create value, companies currently employ two methods:

Resource Reduction – reducing staff, closing offices, etc.

Revenue Enhancement – opening up new markets, channels, and points of distribution

Companies often oscillate between the two, assuming that value will be created by applying management expertise to the individual transactions, thereby ensuring successful outcomes. Every firm tries to maximize the value it creates for its own shareholders. However, these firms often lose sight of the relational costs of these actions. This inevitably produces contradictions, friction and conflict within the supply chain.

The worst consequences, however, are for the end consumers. Transactions structured solely to maximize the organization’s yield treat the consumer only as a means to an end. Therefore “Caveat Emptor” (let the buyer beware), becomes ever more meaningful and reflective of the consumer’s everyday experience. Business as practiced today, within the constraints of transaction economics, is in crisis for both the producer and the consumer.

Transaction Economics

Businesses today operate in one of two broad categories:

The boutique market, where companies offer customers high levels of customer experience and support, but restrict their distribution into the marketplace

The commodity market, where companies severely limit customer support but attempt to maximize their distribution

The difference in quantity and quality of customer support and purchase experience encourages consumers to search for suppliers that provide both consistent quality of support and distribution reach. Smart companies recognize this and respond by creating a recognizable brand or franchise.

Businesses commonly use aggressive practices dubbed “transaction economics” which are business relationships comprised of a series of unique transactions between sellers and buyers. Each sale or purchase is self-contained and complete. As a result, each transaction occurs as if it has no historical or future context. From the seller’s perspective, creating value (shareholder wealth) can be defined as maximizing the potential value in each transaction.

Transactional Business

At the end of the 19th century, the technology of the industrial revolution and the vision of businessmen such as Henry Ford combined to create a basic change in our social fabric. For the first time in history, a large part of our population had access to factory produced consumer goods. This represented a huge cultural change from the earlier eras of small localized cottage businesses. It began a period of unprecedented wealth creation.

Businesses today operate in one of two broad categories:

The boutique market, where companies offer customers high levels of customer experience and support, but restrict their distribution into the marketplace

The commodity market, where companies severely limit customer support but attempt to maximize their distribution

Introducing BuildUSA-Chicago


BUILDUSA-CHICAGO

We understand that in today’s world of limited resources, shifting polices and reimbursement uncertainty, healthcare executives face many challenges in building successful leading edge organizations. Many industry drivers are difficult to predict or control but have significant impact on community relationships, service quality and financial performance. Limited internal management resources with ongoing day to day responsibilities are constantly challenged to adequately address unique situations without sufficient background knowledge, support and advice.

 

 “CIRCLE OF INTEREST” 

We are pleased to announce that Syntec Group and Hosking Healthcare is an alliance of two senior healthcare leaders (operating together as BuildUSA-Chicago) with significant industry knowledge, objectivity, integrity and trusted advisory insight.  Our individual experience is supported by an affiliated team of senior content specialists in management, process design, facility planning and project execution in a variety of healthcare settings. As healthcare management consultants, we keep abreast of the dynamics and trends in the healthcare marketplace. Our healthcare planning focuses on the future not following our successes of the past.

Some of our services include:

Senior advisory

Second opinion facility review

Master facility planning

Merger operational/facility analysis

Performance improvement facilitation

(For a more detailed description of available services please visit: www.SyntecGroup.com)

When objective, seasoned planning expertise is needed, we are the group to consider. If there is an issue of immediate interest, please reach out and contact either one of us.  One of us will be calling in the coming weeks to set up an introductory meeting to discuss any consulting needs your organization may be considering. We look forward to talking with you in the near future.

L.I.F.E. Concept

 

THE SEVEN  ELEMENTS of  L.I.F.E

Day Care – elders and children

Elder Care – skilled nursing, assisted & independent living

Health Care – primary, specialty, urgent, therapy

Ambulatory Surgical Care (ASC) – same day surgery

Education Awareness – learning, teaching, promotion

Fitness & Awareness – fitness evaluation and activity centers

Diagnostics – non-invasive technology

The goal of L.IF.E  is to create facilities that address as many of the seven elements as possible. Successful implementation will allow facility executive management to satisfy their traditional needs in the areas of:

Effective risk management

Cost control and financial stability

Striking a balance between wellness creation and the more traditional treatment of illness

Creation of a community resource

A Higher Quality Building, Improved and Demonstrable Metrics “All for a Lower Cost”

“Building and Technology”

The building industry is on the verge of entering the 21st century.   Substantial improvements in technology, process and materials are leading a wave of innovation.  For numerous reasons building has historically lagged behind other industries ( i.e. manufacturing, aviation, electronics, technology, transportation). Perhaps the most powerful being that every project (regardless of scale or complexity) assembles a unique project team,  implements unique process procedures and ultimately constructs a unique end product on a unique site under unique meteorological conditions.

Market conditions are creating pressures that are demanding that the building industry evolve. Regulatory requirements, energy markets, industry cultural changes resulting from natural staff turnover and customer demands are clearly communicating that “business as usual” will not be supported. Increasingly the Industry is being required to provide a “higher quality building process and product with improved and demonstrable performance metrics “All for a Lower Cost”.

The ability to meet the increasing market demands will require the creation and adoption of new collaborative tools and processes. The ability to accumulate and access the necessary data, design and implement analysis to accomplish these goals requires that a collaborative environment (we will call BuildUSA) be developed and adopted on a industry wide basis. BuildUSA (BUSA)  must be a branded collaborative solution that will provide consistency, efficiency, quality and trust across all projects. BUSA will develop into the source of Business Intelligence necessary to positively impact on all aspects of building including but not limited to; energy efficiency, commodity consumption, time and scheduling, construction budget and cost, finance fees, building performance, comfort and health.

As of July 2016, seasonally adjusted construction spending in the United States hovers around  1,153,175 trillion per year (source: US Census), and in excess of 8.5 trillion world wide (source: Boston Commons High Tech Network). Equally important to the discussion is that building projects drive spending in all sectors of the economy, not just buildings.  All the space created has to be filled with furnishings, technology and people. Ironically, even well run and financially lucrative projects are often sources of great frustration for many if not all of the participants. On the many projects that are not well run, the frustration level increases in lockstep with the cost.

The industry understands there are challenges that must be solved. The millions of daily transactions are often merely sources of millions of daily headaches. But over the years the industry has proven remarkably resistant to systemic change in the building process. There are many reasons, but three stand out:

  • Dispute litigation is a painful historic corollary to the building process. Successful companies have developed specific protocols that generally enable them to avoid or win most law suits, but these protocols are frequently counterproductive by their nature.
  • Many companies in the industry have come to rely on inefficient data flow and communication in order to “game” the system to their own business advantage. They have no real incentive to change.
  • No single tool has emerged to unite the industry under a consistent format. These words were originally written in the late 1990’s and although there has been substantial progress they are still true today.

 

“THE PLATFORM”

A well designed collaborative platform tool that can solve most of these problems is yet to hit the market. Issues of pricing and business model have impaired the success or growth of all of the entries to date. The industry wants and needs a branded process that is easily understood and portable from project to project. “It must provide a level playing field for all project participants”, transparency, affordability (in some cases free access), a short training/learning curve, and benefits that are obvious and measurable for each project player.

The Future of Collaboration

BUSINESS MODELS FOR BUILDING

The building industry has resisted this type of innovation, even though it has been successfully embraced by multiple industries for decades.  In the next decade two collaborative business models will successfully differentiate themselves:

  1. Internally Integrated Business Conglomerate(IIBC):
    1. These organizations represented today by companies such as Bechtel, AECOM……etc., have complete verticals in almost all market sectors and services, and currently dominate the large scale market
  1. Collaboratively Integrated Partner Organization(CIPO):
    1. Small to mid-size firms who have developed strong brands will increasingly develop collaborative business organizations that can pool the required skills, processes and resources to compete in any market and at any scale. Maintaining their unique identity/culture while remaining nimble enough to quickly accommodate market shifts.

Leverage Scale and Standardization of Best Practice

“THE CHANGING NATURE OF WORK”

For the foreseeable future, larger business systems will be the main drivers of change in the building industry. Regulatory compliance, capital availability, and purchasing power will increasingly favor organizations that can “leverage scale and standardization of best practice” in operational processes. Ownership will demand that future infrastructure projects provide both a process and final product that demonstrably improve the quality of care/service and client outcomes at a lower cost.

A growing conflicting view takes into account the ability for technology to provide small “technologically savvy” companies immense asymetric stength that far outweighs the staff size or access to business resources.

What is undeniable, is that both trends are directly responsible for much of the job loss experienced throughout the marketplace. The ability to accurately define the changing nature of work, worker and the employer is a critical question in all business markets (not just building) and for society as a whole.

 

“You Cannot Get There From Here”

 “You Cannot Get There From Here”.

The achievements of other industry leaders in aviation, electronics, manufacturing and technology have improved product quality and increased both efficiency and value by orders of magnitude. Within the building business, historical constraints (i.e. fear of transparency, fear of litigation, perceived competitive advantages, and fear of change) have clashed with a series of faulty software, business and collaborative platform models that have ensured failure. Comparable improvements cannot be realized by the building sector with point specific solutions.

Wave

“A GROWING WAVE”

A growing wave of pressure for change has been building for decades and will continue to grow. Increasingly it will be focused on a new audience. The changing demographics of industry leadership will not accept the status quo. Young professionals who have grown up with the internet, Google, Twitter, Facebook… are now entering positions of authority. Over the next ten years they will reject the antiquated building model and will apply pressure to change historic prejudices. Change, when it comes, will be swift and compelling.